[Federal Register Volume 80, Number 23 (Wednesday, February 4, 2015)]
[Notices]
[Pages 6144-6145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02107]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74173; File No. SR-BATS-2015-06]
Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Amend
the Fees Applicable to Securities Listed on BATS Exchange, Inc.
pursuant to Rule 14.13
January 29, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on January 22, 2015, BATS Exchange, Inc. (the ``Exchange'' or ``BATS'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend the fees applicable to
securities listed on the Exchange pursuant to BATS Rule 14.13. Changes
to the Exchange's fees pursuant to this proposal are effective upon
filing. Changes to the fee schedule pursuant to this proposal are
effective upon filing.
The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.com/, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On August 30, 2011, the Exchange received approval of rules
applicable to the qualification, listing, and delisting of companies on
the Exchange,\3\ which it modified on February 8, 2012 in order to
adopt pricing for the listing of exchange traded products (``ETPs'')\4\
on the Exchange,\5\ which it subsequently modified again on June 4,
2014,\6\ and October 16, 2014.\7\ The Exchange proposes to modify Rule
14.13, entitled ``Company Listing Fees,'' to modify how the Exchange
administers the billing of the application fee applicable to the
listing of ETPs to more closely align with the Exchange's typical
billing cycle, which is administered on a monthly basis. Currently, the
issuer of an ETP is required to pay the $5,000 application fee to the
Exchange with the application to list the ETP on the Exchange. The
Exchange is proposing to amend the language in Rule 14.13(b)(1)(C) such
that the application fee for ETPs becomes billable to the issuer for
the month during which the ETP is first listed on the Exchange. As
proposed, instead of requiring the Exchange to take payment without
issuing any bill, the Exchange would bill application fees to issuers
on a monthly basis, which is in line with how the Exchange applies most
other aspects of its billing. The Exchange notes that it is not
proposing to amend the $5,000 application fee for ETPs.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 65225 (August 30,
2011) 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018).
\4\ As defined in BATS Rule 11.8(e)(1)(A), the term ``ETP''
means any security listed pursuant to Exchange Rule 14.11.
\5\ See Securities Exchange Act Release No. 66422 (February 17,
2012) 77 FR 11179 (February 24, 2012) (SR-BATS-2012-010).
\6\ See Securities Exchange Act Release No. 72377 (June 12,
2014) 79 FR 34822 (June 18, 2014) (SR-BATS-2014-024).
\7\ See Securities Exchange Act Release No. 73414 (October 23,
2014) 79 FR 64434 (October 29, 2014) (SR-BATS-2014-050)
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that
[[Page 6145]]
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6 of the Act.\8\ Specifically, the
Exchange believes that the proposed rule change is consistent with
Section 6(b)(4) and 6(b)(5) of the Act,\9\ in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
issuers and it does not unfairly discriminate between customers,
issuers, brokers or dealers.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed changes are a reasonable,
equitable, and non-discriminatory allocation of fees to issuers because
the proposal is designed only to amend the timing and method with which
issuers are billed for the application fee for ETPs and not to make any
changes to the amount of the $5,000 application fee. Further, the
proposal will benefit all ETP issuers because it will allow them to pay
their application fee at a later date than they are required to pay the
application fee today. The Exchange also notes that the proposed
changes will apply equally to all issuers that list ETPs on the
Exchange. Based on the foregoing, the Exchange believes that the
proposed amendment to the billing associated with application fees for
ETPs is a reasonable, equitable, and non-discriminatory allocation of
fees to issuers.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. With
respect to the proposed new billing method for the application fee
related to ETPs, the Exchange does not believe that the changes burden
competition, but instead, enhance competition, as it is intended to
increase the competitiveness of the Exchange's listings program by
allowing the Exchange to offer ETPs the ability to pay their
application fees after an ETP is already listed and trading on the
Exchange instead of requiring the issuer to pay the application fee
upon submission of their application. As such, the proposal is a
competitive proposal that is intended to make the Exchange a more
attractive venue for ETP listings, which will, in turn, benefit the
Exchange and all other BATS-listed ETPs.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any written comments from members or other interested parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act\10\ and paragraph (f) of Rule 19b-4
thereunder.\11\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BATS-2015-06 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-BATS-2015-06. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices of the Exchange.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-BATS-2015-06,
and should be submitted on or before February 25, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-02107 Filed 2-3-15; 8:45 am]
BILLING CODE 8011-01-P